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From April 19 to 22, US Assistant Secretary for South and Central Asian Affairs Paul Kapur visited Nepal. Although it was a routine visit, it carried significance for two main reasons. First, it was his first visit to Nepal after assuming office at the State Department last year. Second, the visit came on the heels of the Rastriya Swatantra Party’s stunning victory in Nepal’s landmark March 5 elections and the appointment of Balendra Shah as prime minister on March 27. The visit provided an opportunity for Kapur to outline the new priorities of the Donald Trump administration and to understand the priorities of Nepal’s new government. For Nepal, it was a chance to communicate its priorities to the United States, a major development partner since the 1950s. Since Trump’s second inauguration, there has been no substantial high-level engagement between the two countries. It was only after nine months that Kapur was appointed to oversee the region. Meanwhile, Nepal was preoccupied with internal issues such as the GenZ protests and the March 5 vote. That is why Kapur’s Nepal visit got delayed. Kapur’s meetings this week with political leaders, business representatives and members of the cultural community indicate both continuity and change in the Trump administration’s Nepal policy. During his stay in Kathmandu, he met RSP Chairperson Rabi Lamichhane, Foreign Minister Shishir Khanal and Finance Minister Swarnim Wagle. He also held discussions with members of the business community and representatives of the Tibetan community in Nepal.  Unlike previous assistant secretaries, who typically met opposition leaders, former prime ministers, civil society representatives, and media figures, Kapur’s engagements in Kathmandu were relatively limited. Now, turning to the key issues discussed with Nepali officials: as the Trump administration has dismantled USAID—which previously supported Nepal’s health, education, agriculture, and energy sectors—Kapur emphasized deepening and expanding commercial ties during his meetings with government ministers and business leaders. This signals that the US is shifting away from aid (except in a few areas) and focusing more on investment.  The dismantlement of USAID created a stress on Nepal’s health, education and agriculture sector. The Trump administration has been prioritizing trade over aid and investment assistance which puts Washington in a stronger position to counter China. In his meeting with Finance Minister Wagle, Kapur stressed improving the business climate to attract US companies. He noted that more American private firms would invest in Nepal if a more investment-friendly environment were created. Even during the Joe Biden administration, both sides had discussed increasing American investment in Nepal. The Trump administration has also continued projects under the Millennium Challenge Corporation, which the US views not as aid but as investment. Speaking before the House Committee in February, Kapur said that carefully targeted investment can provide South Asian countries with high-quality, transparent and non-coercive support for critical infrastructure such as ports, telecommunications networks, and energy systems—helping them avoid the risks of “debt-trap diplomacy,” a veiled reference to China. He made similar remarks during a recent meeting with Bangladesh’s finance minister in Washington, emphasizing expanded trade and investment, improved market access, energy cooperation and opportunities in infrastructure development. Collaboration in digital infrastructure is another major US priority in Nepal. In discussions with business representatives, Kapur highlighted opportunities in Nepal’s ICT sector, including strengthening digital infrastructure, promoting artificial intelligence adoption, enhancing cybersecurity and sharing US technological expertise. Interestingly, the Chinese ambassador to Nepal recently made similar proposals in talks with Finance Minister Wagle. Immigration policy has also become a major priority under Trump’s second term. Kapur raised concerns about illegal immigration and human trafficking in his meeting with Foreign Minister Khanal. Over the past year, the US  has deported hundreds of Nepali nationals residing illegally in the country, and this issue has been discussed in prior engagements in Washington. Enhanced defense cooperation is another priority for the US, representing continuity with past policy but with greater emphasis under the Trump administration. Although Kapur did not meet security officials during this visit, earlier engagements suggest this focus. For instance, Admiral Samuel J. Paparo, commander of the US Indo-Pacific Command (INDOPACOM), highlighted expanded defense cooperation during his visit to Nepal. In previous statements, Kapur has emphasized that countries like Nepal, Bangladesh, the Maldives, Sri Lanka and Bhutan hold strategic importance due to their geographic positions but are also vulnerable to external pressure. Defense cooperation with the US, he argued, can help these nations safeguard their borders and waterways. The US continues to promote the State Partnership Program (SPP), although Nepal decided in 2022 not to join it. Through INDOPACOM, the US has supported Nepal in strengthening disaster response capabilities via joint exercises, technical assistance, and non-combat equipment such as helicopters, vehicles and communication systems. Additional training and logistical support aim to enhance Nepal’s capacity for peacekeeping and humanitarian operations, aligning with broader goals of self-reliance and regional resilience. Countering Chinese influence in Nepal remains a longstanding US priority, and the Trump administration appears to be placing renewed emphasis on it, even if it was not explicitly stated during this visit. Notably, issues such as democracy, climate change cooperation, human rights, media freedom, and minority rights—often highlighted in previous US engagements—were not prominently raised during this visit.